Financial Information BeiGene, Ltd. (the "Company") submitted a listing application (the "Listing Application") for a proposed issue of the Company's ordinary shares and listing of such shares on the Science and Technolo

Financial Information

BeiGene, Ltd. (the "Company")

submitted a listing application (the "Listing Application") for a proposed issue of the Company's ordinary shares

and listing of such shares on the Science and Technology Innovation Board (the "STAR Market") of the Shanghai Stock

Exchange to the Shanghai Stock Exchange, which was prepared in accordance with the listing rules of the STAR Market and the

applicable securities laws and regulations of the PRC (the "PRC Securities Laws"). On January 29, 2021, the Shanghai

Stock Exchange notified the Company that the Listing Application had been accepted by the Shanghai Stock Exchange, and the Listing

Application became available to the public on the website maintained by the Shanghai Stock Exchange.

As required by the PRC Securities Laws,

the Listing Application contains historical financial information of the Company that was prepared in accordance with the China

Accounting Standards for Business Enterprises - Basic Standard ("CAS") and other applicable PRC accounting rules,

guidance and interpretations, including but not limited to the China Securities Regulatory Commission's Compilation Rule for

Information Disclosure by Companies Offering Securities to the Public No. 15 - General Rules for Financial Statement

(2014 revised), and Compilation Rule for Information Disclosure by Companies Offering Securities to the Public No. 24-Special

Provisions on Information Disclosure in Financial Statements of Pilot Innovative Red-chip Companies on the Sci-Tech Innovation

Board (together with CAS, "PRC GAAP") for the years ended December 31, 2017, 2018 and 2019, and the nine months

ended September 30, 2020 (the "Reporting Period"). The key differences between such financial information prepared

in accordance with PRC GAAP and those prepared in accordance with the accounting principles generally accepted in the United States

("U.S. GAAP") for the Reporting Period, which was previously filed with the U.S. Securities and Exchange Commission,

are summarized as below.

Key Differences between PRC GAAP and

Share-based Compensation

Under U.S. GAAP, the Company elects to

recognize the share-based compensation expenses using the straight-line method for all employee equity awards granted with graded

vesting based on service conditions provided that the amount of compensation cost recognized at any date is at least equal to the

portion of the grant-date value of the options that are vested at that date.

Under PRC GAAP, the Company recognizes

share-based compensation expense using the accelerated method for all employee equity awards granted with graded vesting.

Excess tax income from the exercise

Under U.S. GAAP, deferred taxes are calculated

based on the cumulative share-based compensation expense recognized in the financial statements and ASC 2016-09 requires all excess

tax benefits and tax deficiencies to be recorded as income tax expense or benefit in the statement of operations, rather than in

shareholders' equity.

Under PRC GAAP, deferred taxes are calculated

based on the estimated tax deduction determined at each reporting date. If the tax deduction exceeds cumulative compensation cost

for an individual award, tax benefits on the excess are credited to shareholders' equity. If the tax deduction is less than

or equal to cumulative compensation cost for an individual award, tax expenses are recorded in the statement of operations.

Withholding income tax and related government

grants arising from inter-company equity transactions

Before the adoption of ASU 2016-16, Intra-Entity

Transfers of Assets Other Than Inventory, U.S. GAAP requires taxes paid on profits from intercompany sales and transfers of assets

to be deferred and prohibits the recognition of deferred taxes for the increases in the tax bases due to an intercompany sale or

transfer. The income tax effects of the intercompany sale or transfer of assets are recognized when the assets are sold to a party

outside of the consolidated group or otherwise expensed. After the adoption of ASU 2016-16 from January 1, 2018, companies

are required to recognize the income tax effects of intercompany sales and transfers of assets other than inventory in the period

in which the transfer occurs.

Under PRC GAAP, taxes paid by the transferor

on intercompany profits from the transfer of assets within a consolidated group are recognized as tax expense as incurred. PRC

GAAP requires the recognition of deferred taxes on temporary differences between the tax bases of assets transferred between entities/tax

jurisdictions that remain within the consolidated group.

Such difference only had an impact on the

income taxes of the Company in 2017, and no impact in the remaining periods within the Reporting Period.

Under U.S. GAAP, as a lessee, the Company

recognizes a lease liability based on the present value of the total remaining lease payments, and a corresponding right-of-use

assets under U.S. GAAP. The Company subsequently recognizes operating lease expenses on a straight line basis over the lease term.

PRC GAAP requires entities to present interest

expenses on the lease liability and depreciation on the right-of-use assets separately in the statements of operations. The combination

of a straight-line depreciation of the right-of-use assets and the effective interest rate method applied to the lease liability

will result in a higher total charge to profit or loss in the initial years of the leases and decreasing expenses during the latter

part of the lease term.

Income taxes in the interim period

Under U.S. GAAP, one overall estimated

annual effective tax rate should be used to determine the interim period tax expense or benefit when a company is subject to tax

in one or more jurisdictions.

PRC GAAP requires that an entity determine

a separate estimated average annual effective income tax rate for each taxing jurisdiction and apply it individually to the interim

period pre-tax income of each jurisdiction.

Research and Development Expenses Allocated

by Key Products and Other R&D Projects

As required by the PRC Securities Laws,

the Listing Application also contains financial information regarding the research and development ("R&D") expenses

allocated by key products and other R&D projects, which was prepared in accordance with PRC GAAP.

The financial information presented in

the Listing Application regarding R&D expenses allocated by key products and other R&D projects, prepared in accordance

with U.S. GAAP, is presented below. Amounts reported herein are stated in thousands of U.S. dollars.